Sole proprietorships and partnerships are the two types of businesses that can be registered under the Registration of Businesses Act 1956. Here’s how to do it:
1. Before you are allowed to register your sole proprietorship or partnership, you are required to select a name for your business. This can be done at the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM) by filling in a business name application form (PNA.42) with the following details:
• The proposed business name
• Name and identity card number, if the business owner
• Nature of business
• Signature of the owner and the date of the application
The approval process only takes 60 minutes upon submission at SSM’s service counter (You need not go through this step if you are using your personal name as per identity card for your business name).
2. Submit Form A (Registration of New Business) within 30 days from approval of business name. The following details are required:
• Name of business
• Nature of business
• Date of commencement
• Place of business
• Branch(es) of business, if applicable
• Particulars of owners of business; and
• Partnership agreement, if any
• Signatures of all owners
3. Attach the following documents with Form A:
• Approval letter of business name (from SSM)
• Photocopies of all owners’ identity cards
• Photocopy of Partnership Agreement, if any
• Permit, licence, approval or supporting letter from other agencies, for businesses that require special approvals
Requirements for Business registration in Malaysia
1. Malaysian citizens and permanent residents aged 18 and above
2. The business must be registered not later than 30 days after commencement
3. The nature of the business must not contravene any laws
Registration Fee for the business registration
• Sole proprietorship using own name as per identity card – RM30
• Sole proprietorship and partnership using trade name – RM60
• Registration of branches – RM5 per branch
• Business information print-out – RM10
To conduct a business in Malaysia, the most common form of company is one that is limited by shares. The liability of the shareholders (owners of the company) is limited to their investment in the shares. If the company becomes insolvent or falls into liquidation, the shareholders are not required to make a further contribution to repay the company’s debts. The shareholders and the company are considered separate legal entities.
Sendirian Berhad Company
A company limited by shares can be a private limited company (Sendirian Berhad) or a public limited company (Berhad).
Private Limited Company (Sendirian Berhad, Sdn Bhd)
A large number of SMEs in Malaysia are private limited companies. As its name suggests, a private limited company’s shares are privately held by its shareholders and are not open to the public. The right to transfer its shares may be subject to the approval of the company’s directors.
Public Limited Company (Berhad)
A public limited company’s shares are offered to the public for subscription and are freely transferable via trading through a stock exchange. A company must meet certain revenue and other conditions before it is eligible to list its shares in the stock exchange.